Baptiste has the potential to produce an average of 59,100 tonnes of nickel per annum over a projected mine life of 29 years
FPX Nickel secures investment from Sumitomo Metal Mining. (Credit: Khusen Rustamov from Pixabay)
FPX Nickel Corp. (TSX-V: FPX, OTCQB: FPOCF) (“FPX” or the “Company”) is pleased to announce that it has entered into a subscription agreement for a private placement financing (the “Private Placement”) with a new cornerstone strategic investor, Sumitomo Metal Mining Canada Ltd. (“SMCL”), a wholly-owned subsidiary of Sumitomo Metal Mining Co., Ltd. (TSE: 5713) (“SMM”).
Under the terms of the Private Placement, FPX will issue 30,104,488 common shares (“Private Placement Common Shares”) in the capital of the Company to SMCL at a price of $0.48 per Private Placement Common Share, for gross proceeds of $14,450,154. Upon completion of the Private Placement, SMCL will own 9.9% of FPX’s issued and outstanding common shares on a non-diluted basis.
“This strategic investment by Sumitomo Metal Mining represents another significant technical validation of FPX’s Baptiste Nickel Project (“Baptiste” or the “Project”), and underscores our view that Baptiste is a class-leading asset,” commented Martin Turenne, FPX’s President and CEO. “SMM is one of the world’s largest nickel producers, with peer-leading expertise in mining, processing and refining products in the stainless steel and electric vehicle battery supply chains. FPX is pleased to be one of SMM’s preferred partners as they look to expand their nickel production profile and diversify their supply chain to allied partners in North America.”
Eiichi Fukuda, Executive Officer and General Manager of Mineral Resources Division of SMM stated, “We expect that this investment will establish a strong relationship between SMM and FPX, with the aim to contribute to SMM’s long term production target of 150,000 tonnes of nickel per year. We have a long business history in Canada with a variety of partners, and we are excited to be working with FPX.”
The Company intends to use the net proceeds of the Private Placement primarily for exploration and development activities at the Project, continuance of ongoing environmental baseline activities, feasibility study readiness activities, and general corporate and administrative purposes. The Private Placement is expected to close on January 22, 2024 and is subject to certain customary conditions, including acceptance by the TSX Venture Exchange, as well as execution of an Investor Rights Agreement and a ROSO agreement (each as described below). The Private Placement Common Shares issued pursuant to the Private Placement will be subject to a hold period of four (4) months and one (1) day from the date of issuance in accordance with applicable securities laws.
Source: Company Press Release